CFE's Losses Mount as Financial Strains Deepen, Raising Concerns About Long-Term Stability
CFE's losses soared by 229% in 2024, reaching a staggering $124.4 billion pesos. Despite a slight revenue increase, a significant surge in financial expenses drove the state-owned utility into a deeper deficit.
Mexico's state-owned electric utility, Comisión Federal de Electricidad (CFE), faces a widening financial chasm, with significant losses reported for the full year 2024, casting a shadow over the company's future and potentially impacting the broader Mexican economy. A new report by the Mexican Institute for Competitiveness (IMCO) reveals a troubling picture of escalating debt, surging financial expenses, and a heavy reliance on government subsidies, raising questions about the utility's long-term sustainability.
The IMCO report, released on February 28, 2025, provides an in-depth analysis of CFE's financial performance through the fourth quarter of 2024. While the company showed a modest increase in revenue, this was dwarfed by a dramatic surge in financial costs, primarily due to the peso's depreciation against the dollar. This led to a net loss of 124.4 billion pesos (approximately $6.3 billion USD based on late February 2025 exchange rates). This represents a staggering 229% deterioration compared to the same period in 2023, when the company reported a profit.
